China’s Xi to Unveil Plans to Make Macau Financial Hub, Reuters Says Jihye Lee December 12, 2019 https://www.bloomberg.com/news/arti...-financial-hub-reuters-says?srnd=premium-asia Chinese President Xi Jinping plans to announce policies aimed at diversifying Macau’s economy beyond gaming, Reuters reported, in a nod of support as unrest continues to trouble neighboring Hong Kong. The policies include establishing a yuan-denominated stock exchange, accelerating a yuan settlement center which is currently being developed and allocating land for Macau, Reuters said, citing unidentified government officials and company executives. The measures were intended to mark the 20th anniversary of the former Portuguese colony’s return to Chinese rule, an event that will bring Xi to the Macau, the report said. The bourse would focus on bond trading first to encourage local and mainland companies to issue debt in the city, Reuters said. The exchange would also focus on startups and target companies from Portuguese-speaking countries to avoid direct competition with Hong Kong or Shenzhen, it reported, citing six Macau executives and Chinese officials. Xi will also announce Macau’s decision to join the Beijing-based Asian Infrastructure Investment Bank. Future priorities will include tourism and finance, and for Macau to be used as venue to host international meetings like Singapore, an official told Reuters. Casino stocks jumped to session highs after the report, reversing declines seen in recent weeks following soft November gaming results. Wynn Macau Ltd. led with a 4.7% gain Thursday in Hong Kong. Others stocks in the sector at least 2.5% The plans may have been in the works for a while. The Securities Times reported in October that a proposal for a securities exchange in Macau were submitted to the Chinese central government. Authorities were researching how to fit Macau’s advantages into Xi’s broader Greater Bay Area plan to knit the region together more tightly, the Security Times said at the time. The blueprint for China’s long-awaited plan to create a high-tech megalopolis on its southern coastline rivaling California’s Silicon Valley was unveiled in February. Proposals include setting up a futures exchange in Guangzhou with carbon emissions as the first product and setting up a securities market in Macau using yuan settlement. Macau is looking to diversify its economy as growth in China slows and the high-rollers who helped make the city the world’s largest largest gaming hub look elsewhere. Local casinos are poised for the first decline in annual gaming revenue since 2016, when Xi’s anti-corrupting campaign battered revenues. The move comes as pro-democracy protests continue to hurt the economy of Macau’s fellow former colony of Hong Kong, which is among the world’s leading financial centers. While the polices weren’t intended for Macau to replace Hong Kong, China wants a contingency plan if the situation in Hong Kong worsens, Reuters said, citing people familiar with the discussions. — With assistance by Kevin Kingsbury
To generalize, the way the Chinese tend to punt, the transition from casino to stock exchange will be an easy one.
Macau can NEVER be what Hong Kong is - as long as China remains the CPC. Hong Kong has been a historical bastion of free enterprise - but as we now know that will not remain.
I don't know about that. Macau has nearly double the GDP per capita of Hong Kong. China also did a bang up job of turning that fishing village of Shenzhen in 1980 into the powerhouse it is today. To grow from a population of 30k to 12 million in less than 40 years is something nobody has seen in their lifetime until now.